FINANCIAL BACKING FOR A NEW COMPANY, BUSINESS ANGELS, VENTURE CAPITALISTS

Financial backing for a new company * business angels * venture capitalists * financial backing for a new company * successful entrepreneurs * how to succeed in business * help * advice * mentoring * new product launch * start up company * business success * business consultants

Seeking financial backing for a new company is difficult, complex and often demoralising. You will need a very good business plan covering all elements of the
business including market share, cash flow and financial projections, production costs, marketing, advertising budgets and strategies. You need to prove that you know
what you are doing. You get very few chances to get it right and persuade a lender to provide financial backing for a new company. It is advisable to employ the help of
business consultants.

If you are starting or buying a business that has tangible assets such as a freehold or leasehold property, the first place to look for financial backing would be a
broker specialising in corporate loans.
This will prevent you trudging round banks, being declined and leaving your credit footprint everywhere. Every time you apply for a loan, it goes on a central credit reference database. Any lender can access this data and see who you have approached for financial backing and if you were declined.

FINANCIAL BACKING FROM BANKS
If you need financial backing for a new company, new product or service launch and there are no tangible assets involved, finding financial backing can be more difficult unless you are prepared to put your house on the line. You should bear in mind that banks, despite their marketing image, by their very nature cannot act in your interests. They are there to lend you money at the highest rate they can get away with and when you have problems and need them most, if they have any major concerns, will pull the rug from under your feet. The old adage - "A bank is someone who will lend you an umbrella and then take it away when it is raining" couldn't be more true.

People who work for banks and are responsible for lending money are not business people or entrepreneurs. They never took a personal risk in their lives; they just went into a secure working environment and have no real concept of what it takes to be a successful entrepreneur. Just remember that Christ threw them out of the temple which is how they ended up on the high streets.

FINANCIAL BACKING FROM BUSINESS ANGELS - VENTURE CAPITALISTS

If you are seeking financial backing for a new company or business idea an alternative is to seek a partner in a Business Angel or Venture Capitalist. They are in fact the same thing. They both invest their money in businesses in exchange for an equity share in your business. Some Venture Capitalists prefer to call themselves Business Angels as a marketing exercise because of the reputation some Venture capitalists have acquired. Business Angels are wolves in sheep's clothing is how some people might describe them.

If you have a good business idea with a good business plan, Business Angels may well consider backing your venture in return for an equity share in the business. They will provide the funding you need, not all at once and put people on the board of directors to ensure that their money is being spent wisely and the new company is hitting targets.

This means you will still need to
outsource the skills and experience
you need with regards to marketing, advertising, PR, the internet, web design as your Business Angels, despite being excellent business people, will not necessarily have the expertise in all these areas and are unlikely to want to get their hands dirty with the day to day business functions.

This means that the money invested in the company is being invested in essential services outside of the business and the pressure is on you to return a profit on their investment. They will be looking to you to deliver the returns they expected which can be a very uncomfortable situation to find yourself in if things are going wrong.

Unless one of your Business Angels fully understand the internet for example and part of your business plan included internet sales, you will most likely have serious problems from day one. The internet is one of the most misunderstood and therefore over rated marketing mediums. You could find your self investing in a new website that, whilst it looks great, never delivers a profit.

A corporate website with proper linking strategies can cost hundreds of thousands of pounds. Successful companies like Ebay and Amazon are spending millions on their internet presence. You cannot expect to generate millions in sales with a website that cost a few thousand pounds and many new businesses discover this too late. If your Business Angel partners don't understand this, you will be in for a rude awakening. This is why we believe we are the best business partners you could have. We can expose your new company to the danger of doing business and right now the best business decision you could make is talk to us.